DEPOSIT IN PUBLIC WAREHOUSE

Under a contract for deposit in a public warehouse the depositary accepts goods, in return for consideration, with an obligation to keep and return them to the depositor or the person authorized to receive them.

(1)

A contract for deposit in a public warehouse shall be concluded in writing and shall be entered in warehouse register.

(2)

The depositary shall keep a warehouse register where he shall enter the contract. An entry shall be made pursuant to a procedure specified in Regulation to be approved by the Minister of Justice.

(1)

A depositary shall be obliged to provide access of the depositor to the goods during the working hours of the warehouse, in order to inspect them, to take samples from them and, with the permission of the depositary, to undertake acts for the maintenance, packing, sorting, separating of the goods and other similar acts.

(2)

The depositary may combine fungibles deposited in the warehouse with other of the same type and quality, unless otherwise agreed.

(3)

Where obvious transformations have occurred in the goods, which give grounds for fears that the goods may be damaged, the depositary must immediately notify the person authorized to receive them, and where no such person is known, the depositor.

(4)

The depositary shall be obliged to insure the deposited goods on behalf of and on the account of the depositor for the value declared thereby, against fire, flood and earthquake, unless they have already been insured or the depositor objects to the insurance. Upon request from the depositor the depositary shall be obliged to insure the deposited goods against other risks as well.

(1)

Upon conclusion of the contract the depositor shall be obliged to provide the information required for the safekeeping of the goods.

(2)

The consideration shall be paid at the end of each calendar quarter or upon return of the goods, unless otherwise agreed.

(1)

The depositary shall issue a warehouse warrant upon request from the depositor.

(2)

The warehouse warrant shall be issued on the basis of the warehouse register and shall comprise a goods note and a pledge note. The two parts of the warehouse warrant shall contain:

1.

indication of the public warehouse and the sequence number under the warehouse register;

2.

name and address of the depositor;

3.

type and quantity of goods and whether they may be mixed with other goods;

4.

time period for keeping the goods;

5.

statement by the depositary that he shall deliver the goods as agreed;

6.

acts to be undertaken by the depositary for preservation of the goods;

7.

information whether the goods are insured, with whom, for what sum insured, against what risks and for what premium;

8.

amount of remuneration due and unpaid expenses prior to the issue of the warrant;

9.

amount of ullage, except where the goods have been accepted by numbers;

10.

place and date of issue of the warrant;

11.

signatures of the depositor and the depositary.

(3)

The depositor, as well as any legitimate holder of the warehouse warrant, ascertained by a continuous sequence of the endorsements, shall be entitled to request the issuing of warehouse warrants for separate parts of the goods in return for the warehouse warrant for the total. Such warehouse warrants shall have the date of the initial warehouse warrant.

(4)

The depositary may refuse to issue warehouse warrant on the grounds of good reasons or if the depositor is in default on payment of due remunerations and expenses.

(1)

The warehouse warrant may be transferred by dated endorsement on the back of the goods note and the pledge note.

(2)

The rules of Articles 466 - 470 and of Article 474 shall also apply to the warehouse warrant.

(3)

An endorsement on the pledge note only shall constitute a right of pledge on the goods deposited in favour of the endorsee. The first endorsement should contain the amount of the loan secured, the interest and maturity, as well as the name and address of the creditor. The pledge may be counterposed against the endorsers of the goods note and shall be entered in the warehouse register. The first endorsee shall be obliged to request those data to be entered in the goods note and in the warehouse register.

(4)

The transfer of only the goods note or only the pledge note shall be effected by dated endorsement on the respective part of the warehouse warrant.

(5)

The legitimate holder only of the goods note, ascertained by the continuous sequence of endorsements, shall be entitled to receive the deposited goods even before maturity of the loan secured by pledge of the goods. In such case he shall be obliged to pay to the depositary the amount of the loan with interest as of the date of payment, to an amount specified in the warehouse register. Where the interest has been prepaid, it shall be deducted for the period from the date of payment to maturity.

The holder of the pledge note who is established through the continuous sequence of endorsements shall present it upon maturity to the debtor for payment, or where the debtor is not known, to the depositor. The note shall be presented for payment at the public warehouse. In such cases the provisions of Articles 505 and 507 shall apply.

(1)

The default on payment of the amount under the note shall be ascertained by protest against the debtor under the pledge note, and where he is not known, against the depositor. In such case Articles 496 and 498 shall apply mutatis mutandis.

(2)

If his claim is not satisfied from the sale of the goods, the creditor under the pledge note may direct the execution against the debtor, the endorsers and the persons who have endorsed the goods note after establishment of the pledge, who shall be liable jointly and severally.

(3)

(Amended - SG 70/1998) Where the creditor under the pledge note fails to make the protest within the specified time period, or if he fails to sell the goods within twenty days from the date of protest, he shall forfeit the recourse action against the endorsers under the pledge note, but shall retain his action against the debtor and the endorsers of the goods note.

(4)

The endorser of the goods note who has paid under the pledge note shall be entitled to an action for the sum paid, the interest and the expenses, against the debtor and the preceding endorsers under the goods note, who shall be liable jointly and severally. The action against the endorsers shall expire by limitation after six months from the date of payment of the debt, and that against the debtor, after three years.

(1)

A destroyed or lost warehouse warrant shall be invalidated pursuant to Article 456 et seq. of the Code of Civil Procedure.

(2)

Following the institution of proceedings for invalidation, the owner of the destroyed or lost warehouse warrant may request from the depositary the issue of a duplicate copy, by providing sufficient guarantee. Where the depositary does not agree with the amount of the guarantee, it shall be determined by the court of first instance.

(3)

Should the destroyed or lost warrant be invalidated, the guarantee deposited pursuant to paragraph 2 shall be returned.

(1)

The goods deposited shall be returned to the depositor, or where a warehouse warrant has been issued, to the holder of the warrant who is established through the continuous sequence of endorsements, against submission of the warrant. The return of the goods shall be effected at the warehouse where they have been deposited, and shall be noted down on the warehouse warrant. The warrant shall be signed by the person receiving.

(2)

Where several persons have been authorized to receive the goods and it has not been ascertained what part of the goods should be received by whom, or where the goods are indivisible, in the case of disagreement between the above the depositary shall be entitled, upon expiration of the term, to sell the goods and to deposit the amount received in a bank in their name.

(3)

Where fungibles have been deposited, the holder of a goods note may receive part of them by paying to the creditor or depositing to his account the respective part of the amount receivable for which the pledge note was issued, together with interest and expenses.

(4)

Ullage of the goods shall be deducted to the amount agreed or provided by operation of law.

The depositary shall be entitled to a pledge for the goods deposited in order to secure his claims.

The depositary may request the depositor to take part of the goods after the expiration of the agreed term, or where no term has been agreed, three months following the deposit of the goods.

(1)

Where the goods deposited are threatened by damage or where they may damage other goods, as well as where there are other good reasons for termination of the contract, the depositary may terminate the contract and demand that the goods are received immediately by the last endorsee, and where he is not known - by the depositor.

(2)

If the goods are not received, the depositary shall be entitled to sell them under the procedure set forth under Article 328, paragraph 1, item 2, after written notification to the legitimate holder to receive them, or where he is not known, to the depositor, and satisfy himself from the sale price for his claim under the contract for deposit. The depositary shall deposit the difference to the account of the creditor under the pledge note.

(3)

If the goods are perishable, the provision of Article 328, paragraph 1, item 3, shall apply.

(1)

An action for damages against the depositary shall expire by a one-year limitation. The limitation period shall commence from the date of return of the deposited item. Where the deposited item has not been returned, the limitation period shall commence from the date on which it should have been returned, and if the item has been destroyed - from the date of coming of knowledge thereof.

(2)

Where the loss, damage, destruction or delayed return of the item have been caused intentionally by the depositary, the limitation period shall be three years.

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